Wis. Bell Urges SCOTUS to Resolve Circuit Split Over E-Rate Reimbursement Claims
The 7th U.S. Circuit Appeals Court erred when it ruled that E-rate reimbursement requests to the Universal Service Administrative Co. (USAC) are actionable claims under the False Claims Act (FCA), Wisconsin Bell’s U.S. Supreme Court reply brief said Monday (docket…
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23-1127). The reply brief supported Wisconsin Bell's April 15 cert petition to reverse the 7th Circuit’s decision. In holding that the FCA’s treble damages and civil penalties apply to submissions made to USAC -- a private corporation paying private funds -- the 7th Circuit “explicitly acknowledged” that it was taking a “contrary view” from the 5th Circuit “about the identical program,” the reply brief said. The circuit split “directly affects billions of dollars distributed each year under the E-rate and three other universal service programs," it said. The acknowledged conflict “casts a shadow of extraordinary liability over a massive number of transactions involving numerous private entities that are subject to government supervision,” said the reply brief. SCOTUS should grant Wisconsin Bell’s cert petition “to resolve the circuit split and restore clarity to the scope of the FCA as applied to government-adjacent programs funded with private money,” it said. SCOTUS distributed Wisconsin Bell's cert petition for the justices' June 6 conference, said a text-only docket entry Tuesday.